Welcome to the conference call Dürr AG Results January-March 2007 Dürr Group Stuttgart, May 10, 2007
Disclaimer This presentation has been prepared independently by Dürr AG ( Dürr ). The presentation contains statements which address such key issues as Dürr s strategy, future financial results, market positions, product development and the effects of the FOCUS restructuring program. Such statements should be carefully considered, and it should be understood that many factors could cause forecast and actual results to differ from these statements. These factors include, but are not limited to price fluctuations, currency fluctuations, developments in raw material and personnel costs, physical and environmental risks, legal and legislative issues, fiscal, and other regulatory measures. Stated competitive positions are based on management estimates supported by information provided by specialized external agencies. - 2 -
3 months 2007 at a glance Q1 2007 Q1 2006 D in m Incoming orders 508.3 429.9 +18.2% Sales revenues 304.1 309.3-1.7% Orders on hand 1,006.2 840.2 +19.8% Incoming orders significantly above the already strong Q1 2006 and above Q4 2006 ( 299 m) Project pipeline strong Orders on hand improved by 25% compared to year end 2006 Sales revenues: Cleaning and Filtration Systems and Factory Assembly Systems below previous year. Weak USD - 3 -
3 months 2007: Incoming orders by selected countries/regions Q1 2007 D Q1 2006 in m Germany 95.1 +87% Eastern Europe 152.1 +429% USA 41.1-43% Mexico, Brazil 63.9 +556% India 40.0 +20% China 34.7-70% Eastern Europe: Very important growth region China: Continuing high project level; Q1 incoming orders no indicator for weakness - 4 -
Incoming orders/book to bill: Turnaround candidates Incoming orders Q1 2007 in m Q1 2006 Q4 2006 Book to bill Q1 2007 Factory Assembly Systems +89% +40% 1.8 Cleaning and Filtration Systems +20% +47% 1.5 Dürr Group +18% +70% 1.7 Strong improvements in incoming orders at Factory Assembly Systems and Cleaning and Filtration Systems Basis for sales growth from Q2 onward - 5 -
3 months 2007: Positive EBIT already in Q1 2007 Q1 2007 Q1 2006 D in m Gross profit on sales 50.5 51.3-1.7% EBITDA 7.2 3.4 +111.8% EBIT 3.0-1.5 - Net income -2.1-4.6 - Gross margin unchanged at 16.6%. Higher efficiency and effects of service/revamp strategy offset by still weak results in Factory Assembly Systems and by execution of low margin orders at Paint and Assembly Systems Further improved cost situation in SG&A - 6 -
3 months 2007 Cash flow from operating activities Q1 2007 Q1 2006 in m EBIT 3.3-1.6 Amortization and depreciation of non-current assets 4.2 4.9 Income taxes paid -2.0-6.9 Changes in provisions -5.9-7.9 Changes in net working capital 4.3 0.4 Other -12.9-16.7 Total -9.0-27.8 Cash flow significantly improved compared to last year - 7 -
3 months 2007 at a glance Net financial debt in m 0 FY 2006 Q1 2007-20 -40-60 -80-100 -96.5-120 -140-130.4-123.7-160 Period end Period average -144.5-8 -
Paint and Assembly Systems 3 months 2007 in m Q1 2007 Q1 2006 Incoming orders 425.0 354.4 Sales 244.7 244.2 EBIT 3.6 3.3 Strong demand worldwide Incoming orders: Double-digit %-growth at Paint Systems and Factory Assembly Systems Strong sales & earnings growth expected in the course of 2007-9 -
Measuring and Process Systems 3 months 2007 in m Q1 2007 Q1 2006 Incoming orders 83.9 75.6 Sales 60.1 65.1 EBIT 0.0-2.7 Balancing and Diagnostic Systems: Ongoing positive. Earnings above budget in Q1 Cleaning and Filtration Systems: Situation clearly improved, incoming orders above budget and previous year. Quality of orders improving as well - 10 -
Forecast 2007: Sales growth of between 5 and 10%, ongoing strength of Euro could dampen sales growth 2007: Strong earnings improvement driven by - improved processes - FOCUS effects - turnaround at loss-making operations - growth in services business 2008 - EBT margin goal of 4% unchanged - Based on the new group structure EBITDA margin goal is 6.5% (previously up to 8%) - EBIT margin goal of 5% - 11 -
Summary: On track Q1 2007: In line with budget; strong incoming orders Turnaround candidates with encouraging improvements Requests for quotation remain buoyant. The automobile market should see healthy growth in the next years 2007 - Strong growth in earnings - Positive cash flow - Reduced debt - Dividend payment - 12 -
Shareholder structure May 10, 2007 Free Float 50.7% according to calculation of Deutsche Börse - 13 -
Financial Calendar 05/18/2007 Annual shareholders meeting, Stuttgart 08/09/2007 Interim report first half 2007 11/15/2007 Interim report on first nine months 2007 11/12-14/2007 Eigenkapitalforum, Frankfurt Contact: Dürr Aktiengesellschaft Corporate Communications & Investor Relations Otto-Dürr-Strasse 8 70435 Stuttgart Germany Phone +49 (0)711 136-1785 E-mail investor.relations@durr.com - 14 -
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3 months 2007 (2006): Incoming orders and sales Incoming orders regionally balanced Incoming orders Sales 17.3% (39.0%) 18.7% (11.8%) 22.0% (16.4%) 24.1% (25.2%) 21.6% (20.7%) 42.4% (28.5%) 17.3% (23.8%) 36.6% (34.6%) Germany Europe excluding Germany North & South America Asia, Africa - 16 -